The Chapter 7 Trustee’s Power to Avoid Transactions
The purpose of bankruptcy is to enable people who have suffered financial hardships to discharge their debts and get a start fresh. However, the bankruptcy law is also designed to treat creditors fairly. Therefore, the law gives the trustee of a bankruptcy estate the power to avoid what are called preferential transfers: those that benefit… Read More »
Can You File for Bankruptcy Without Involving Your Spouse?
You can file for bankruptcy protection without your spouse also being named as a debtor. However, the bankruptcy will not protect your spouse against liability for debts for which you are jointly liable. New Jersey is a common law state, which means that each spouse owns a share (most likely one-half) of the jointly held… Read More »
Bankruptcy and Back Taxes: Are You Still on the Hook?
When you file for bankruptcy, tax debt may be a top concern, especially if other expenses — such as medical bills — have taken priority. If you are worried about tax debt, you will be relieved to learn that once you file for bankruptcy, both the IRS and the state of New Jersey stop tax… Read More »
What Property Can You Keep if You File for Chapter 7?
Chapter 7 bankruptcy allows eligible debtors to discharge their debt, making it an appealing option for many people living paycheck to paycheck with little hope of catching up on accrued debt. But while you may be able to eliminate all of your debt through Chapter 7, it isn’t a free ride. The bankruptcy trustee appointed… Read More »
What Is the Chapter 7 Means Test?
If you are considering filing Chapter 7 bankruptcy, which discharges debt, you must prove that you don’t have the means to pay back your debt. And you prove that by taking a means test. To be eligible for Chapter 7, you must show that your income is too low (and in some cases your expenses… Read More »
Who Can File for Chapter 13 Bankruptcy?
If you are struggling to pay off debt or keep up with monthly bills, you may consider filing for Chapter 7 or Chapter 13 bankruptcy. Under Chapter 7, all of your eligible assets are sold off to pay down your debt, and the remainder may be eliminated. But if you have a home you want… Read More »
How Does Bankruptcy Affect a Cosigner?
Cosigning a loan, lease or another financial obligation for a friend or a loved one is a kind gesture but it involves crucial legal responsibilities. Before you cosign any document, you should take time to understand your obligations to creditors in the event that the borrower is unable to make the payments owed. If the… Read More »
Can You Erase Your Bankruptcy Record Early?
Filing for bankruptcy comes with the understanding that notice of the bankruptcy will appear on your credit report for years to come — specifically, seven years after filing a Chapter 13 and 10 years after filing a Chapter 7. A lot can happen in the time between declaring bankruptcy and being discharged with a clear… Read More »
Can You File For Bankruptcy If You Are Unemployed?
You are not required to be employed to file a Chapter 7 Bankruptcy. In fact, depending upon your prior or future income, your period of unemployment may be the only time that you will qualify. Regular income is not required unless your seeking a Chapter 13 Plan of Reorganization. Chapter 7 cases do not require… Read More »
How Long Does Consumer Bankruptcy Take in New Jersey?
When you’re living under the weight of crushing debt, time seems to stand still and a future without harassment by creditors seems like a distant fantasy. Fortunately, reality is much more positive. If you file for Chapter 7 bankruptcy, you can discharge your debt and have a clean slate within three to four months. The… Read More »